Wainscott School Budget Falls a Second Time, Throwing District Into Financial Crisis

Voters in the Wainscott School District, for the second time in a month, rejected a proposed budget, throwing the district into a financial crisis.

Although a majority of voters approved the proposed $6,144,331 budget, 79-67, Tuesday, June 20, a supermajority of 60 percent was required, because the budget pierces the state cap on tax levy increases. Only 54 percent of voters supported the measure.

Voting was heavy for Wainscott, as a total of 146 ballots were cast, including 21 absentee ballots. In May, 159 ballots were cast. Typically, fewer than 50 voters turn out for budget votes.

“It’s a definitely a disaster,” said Superintendent Deborah Haab. “We are facing increasing costs that are beyond our control.”

The School Board was scheduled to meet at 6:30 p.m. on Wednesday, June 21, to discuss its options.

“I’m personally stunned and disappointed, and my heart goes out to the 120 students and families we are trying to serve,” said School Board President David Eagan. He said the board’s first order of business would be to assess what the constraints of a “real contingency budget” would be.

“We are going to look at every aspect of our programming. Everything is on the table,” he said. “I don’t think we can rely on any bailout. We are going to have to act like we have to do it on our own. It’s going to be painful.”

The district will be forced by state law to adopt a budget that freezes the tax levy at $3,394,568, the same amount as last year, as a contingency budget.

Wainscott found itself in financial straits last year when 20 additional students moved into the district, leading to a $1 million budget deficit, mostly attributable to tuition fees. Last month, voters approved a proposition allowing the district to raise the necessary tax revenue to cover that shortfall — but they failed to provide the required 60 percent supermajority to pass the proposed $6,161,331 budget, falling just three votes short.

Because last year’s adopted budget already fell well short of the amount needed to operate the district, officials have said they would likely turn to the State Legislature to see if it can approve a special aid package or pass legislation giving it permission to pierce the cap and raise the required revenue.

Haab has already met twice with State Assemblyman Fred W. Thiele Jr. Last week, Thiele said it would be difficult to convince fellow lawmakers to approve an aid package for a district that has such high property tax values, on which the majority of school funding is based. But he said the legislature could pass special deficit financing legislation allowing the district to meet its obligations.

Wainscott had 120 students last year, 28 of whom attended kindergarten through third grade in the district’s schoolhouse. The remaining 92 students attended school in East Hampton, Sag Harbor, Bridgehampton or in BOCES programs.

The district presented voters with essentially the same budget for the revote, cutting only $17,000 for equipment purchases from the spending plan.

Although the budget carries some spending increases, including money to make up last year’s shortfalls going forward, Eagan has repeatedly described the spending plan as bare bones. “This is the least amount we are required to spend,” he said last week. “There is no fat in this budget. It is tight, and it is literally the minimal amount we can spend.”

Eagan stressed that the budget did not reflect the possibility that an affordable housing development could be built by East Hampton Town on property it owns on Route 114 that is just south of Sag Harbor, but in the Wainscott School District. If that project moves forward, its impact will not be felt until 2025 at the earliest, he said.

He said the result of the vote and its freeze of the tax levy meant the district would likely have to ask voters to pierce the cap again next year.

“We’re going to take it one year at a time,” Eagan said. “This is heartbreaking. If we can’t come together for 120 students, maybe it’s also a sign that Wainscott may be a community in name only.”